Unlocking Market Potential for Madurai Malli Through Value Chain Analysis

Abstract

Geographical Indications (GI) serve as intellectual property rights that protect products uniquely tied to specific regions, where distinctive attributes are derived from local natural, cultural, or traditional factors. This study analyses the marketing structure, price spread, and efficiency of GI-certified Madurai Malli in Tamil Nadu’s Madurai district, aiming to identify optimal marketing channels that maximize farmer income and minimize intermediary costs. The research was conducted in Thiruparangundram and Kallikudi blocks of Madurai, involving 60 farmers and 10 intermediaries. The study employed Acharya’s and Shepherd’s approaches to evaluate marketing efficiency, in addition to price spread and producer share analyses. The identified four Marketing Channels (MC) were: MC I (Farmer → Trader → Wholesaler → Retailer → Consumer), MC II (Farmer → Trader → Exporter → Importer → Consumer), MC III (Farmer → Trader → Retailer → Consumer) and MC IV (Farmer → Trader → Processor → Perfumery Exporter → Importer → Consumer). Among these, MC I was the most prevalent (60%), while MC III and MC II accounted for 20% and 10% respectively. MC IV, though promising for value addition, lacked sufficient data for efficiency evaluation. The price spread analysis revealed that MC III delivered the highest net price to farmers (72.97%) and the lowest price spread (27.03%), making it the most efficient channel. MC III as the most efficient channel, with values of 2.45 (Acharya) and 3.36 (Shepherd). The study concludes that shorter value chains offer better economic returns to producers. Enhancing direct linkages between farmers and retailers and promoting collective marketing strategies can further improve sustainability. There is also potential to develop MC IV for value-added products like perfumes, provided adequate infrastructure and data are in place.